Digg Digs Down Staff

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    NEWSLETTERS

    TK
    Digg is making headlines of its own.

    If you need proof that page views don't necessarily bring in the money, look no further than Digg.

    The San Francisco-based social networking site is one of kings of page views. Manipulate your news story to the front page of Digg and sit back and watch the digital hoards pull in.

    But the site that is able to send tens of thousands of clicks to news sites across the web has not necessarily been able to translate that traffic into cash.

    The company announced Monday that it will lay off about 37 percent of its staff. A total of 25 employees. This comes just months after Digg laid off 10 percent of its staff.

    The move was made to coincide with a series of other changes new CEO Matt Williams has implemented to try and reach profitability.

    TechCrunch reports that Digg is running at a loss without about $15 million in revenue. With the cuts, Williams says the company is well on its way to profitability in the middle of next year.

    "Unfortunately, to reach our goals, we have to take some difficult steps," Williams wrote on his company blog. "The fact is our business has a burn rate that is too high. We must significantly cut our expenses to achieve profitability in 2011."

    Williams added that other options were discussed but ultimately he decided, along with Digg's board, that the layoffs were necessary.